Part of the problem in monitoring taxpayer money in Fukushima is the sheer number of companies involved in decontamination, extending from the major contractors at the top to tiny subcontractors many layers below them. The total number has not been announced. But in the 10 most contaminated towns and a highway that runs north past the gates of the wrecked plant in Fukushima, Reuters found 733 companies were performing work for the Ministry of Environment, according to partial contract terms released by the ministry in August under Japan's information disclosure law.
Reuters found 56 subcontractors listed on environment ministry contracts worth a total of $2.5 billion in the most radiated areas of Fukushima that would have been barred from traditional public works because they had not been vetted by the construction ministry.
The 2011 law that regulates decontamination put control under the environment ministry, the largest spending program ever managed by the 10-year-old agency. The same law also effectively loosened controls on bidders, making it possible for firms to win radiation removal contracts without the basic disclosure and certification required for participating in public works such as road construction.
Reuters also found five firms working for the Ministry of Environment that could not be identified. They had no construction ministry registration, no listed phone number or website, and Reuters could not find a basic corporate registration disclosing ownership. There was also no record of the firms in the database of Japan's largest credit research firm, Teikoku Databank.
"As a general matter, in cases like this, we would have to start by looking at whether a company like this is real," said Shigenobu Abe, a researcher at Teikoku Databank. "After that, it would be necessary to look at whether this is an active company and at the background of its executive and directors."
Responsibility for monitoring the hiring, safety records and suitability of hundreds of small firms involved in Fukushima's decontamination rests with the top contractors, including Kajima Corp, Taisei Corp and Shimizu Corp, officials said.
"In reality, major contractors manage each work site," said Hide Motonaga, deputy director of the radiation clean-up division of the environment ministry.
But, as a practical matter, many of the construction companies involved in the clean-up say it is impossible to monitor what is happening on the ground because of the multiple layers of contracts for each job that keep the top contractors removed from those doing the work.
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